The innovation and creativity of the Appalachian people will be the catalyst behind revitalizing Eastern Kentucky. Government help isn't a requirement; but could definitely make the process MUCH easier.
To fully realize the roughly outlined tourism plan, Eastern Kentucky must attract new entrepreneurs and a work force skilled in hospitality (jobs dealing with recreation, food, tourism, etc).
How can Eastern Kentucky find new entrepreneurs? The best way is for federal, state, and local governments to give financial incentives to prospective entrepreneurs in return for opening hospitality/tourism based businesses in Eastern Kentucky. In other words, "money talks".
The federal government could provide incentives through the Small Business Administration (SBA). The SBA doesn't make loans themselves. Banks (hopefully local banks. Remember: "buy local") loan the money. The SBA simply guarantees should the business default, the federal government will cover the default; reducing the bank's risk.
As one might imagine, there are some fairly cumbersome guidelines to qualify. These guidelines should be relaxed and the amount of monies available increased for anyone planning to open a hospitality/tourism business in Eastern Kentucky. Banks could loan more, at a reduced risk. This in turn makes it easier for prospective business owners to bet on themselves and Eastern Kentucky.
The state government could relax state income tax on limited liability organizations for businesses operating in Eastern Kentucky. The federal government, along with nearly all states, allow "flow through" limited liability entities to operate without taxation of the entity itself. This is done to avoid double taxation, because the payments from the entity to the owners are taxed too. Kentucky is one of the few states who have an oppressive and ridiculous state income tax on limited liability organizations. This could be forgiven for the first few years for any business opening/operating in Eastern Kentucky.
Finally several creative local tax strategies/incentives that could be in place to encourage the location/relocation of hospitality/tourism business in Eastern Kentucky versus other parts of the state/country. Property tax, local employment tax, etc. could all be forgiven, delayed, or otherwise reduced.
These would make Eastern Kentucky an attractive location for outside and local entrepreneurs to open new hospitality/tourism business.
In addition to talented business owners, the region needs skilled employees. What would talented businesses be without skilled employees? The best way to hone a workforce for the skills needed in hospitality/tourism is through training and education. Training and education could be obtained at local institutions with a track record of results. Several in state institutions offer associates, bachelors, and masters in business. There are recreation degrees. And there are culinary schools in Louisville turning out incredible chefs.
The problem? Education and training costs money. Sometimes a lot of money. The solution? Student loan or subsidized tuition incentives. Federal student loans could be forgiven or offered forbearance in return for being employed in the Eastern Kentucky region. Furthermore the federal and/or state government could subsidize tuition for any prospective student from Eastern Kentucky that commits to the region for a period of time.
These economic incentives make Eastern Kentucky an attractive location for prospective business owners. Furthermore they ensure these same business owners will have a talented and skilled workforce from which to staff their business.
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